Could you give yourself a payrise?

To be honest, who wouldn’t like a payrise? We could all do with some more money in our pockets, couldn’t we?

However, unless you get promotion, or change jobs, then a hefty payrise is unlikely to appear in the next few years, especially in the public sector. The unions are calling for 3.9% payrise for NHS staff and the EIS have started a campaign to get Scottish teachers a 10% payrise, which would be great. However, we know that the unions have to go in with a higher figure and will have to negotiate from that point downwards!

What are any of us likely to get? Who knows?

A 2% payrise would only give an unpromoted nurse approximately £30-£35* more in their pocket each month. A teacher at the top of the scale could expect around an extra monthly £40-£45* in their pocket for the same 2% increase in pay.

And who knows how long the negotiations could take. Can we afford to wait that long?

I don’t think so.

A third of teachers are worried about providing for their children in the future, a quarter are worried about paying their debts, and 30% are fed up of living from payday to payday. Living expenses are causing concern for 42% and a huge 61% are majorly concerned about planning for the future, including retiring before they drop dead in the classroom.

There is another way.

Rather than waiting for that payrise to come, I think we need to give ourselves a payrise!

We need to take control of our own situations. And we need to do it soon. Before Brexit. Before interest rates rise. And before we crumble under the pressure!

If you could save yourself £250 per month, (Now don’t shut off, thinking that saving £250 per month is impossible. Just bear with me for a minute!) then by the end of the year you could be around £3,000 better off.

Sounds great. But it’s what you could do with that £3,000 that really makes the difference.

What could you do with 3 grand?

Pay off some debts? Paying only the minimum payment on a credit card balance of £3000 with average interest will take you over 27 years to pay off. Paying it off this year will save you £3961 in interest!

That £250 per month saving is now worth £6961 to you!

What else could you do with it?

That’s your £250 per month suddenly grown to a £7,000 saving! Plus you will save on a year’s worth of mortgage payments, which in this example was £501 per month, another £7014. That’s over 11 grand saving from your original £3000!

And that’s just in YEAR ONE! Imagine the ongoing savings! What could you do with them?

But it sounds too good to be true doesn’t it?

My advice would normally be, if it sounds too good to be true, then it generally is.

But this isn’t!

It’s simple maths and it’s the power of compound interest! It either works against you, if you have debts. Or it works for you, if you have investments.

It works FOR me, and it’s working every single day, and night! Even when I am fast asleep, my wee pal compound interest is working away for me.

It’s helping me to reach my dream of retiring at 55!

And I want it to work for you too!

I want to help you to make a real difference to your life. That’s why I wrote Finance for Freedom – a course that will truly make you rethink your whole attitude to money. Spending less money will seem easy, not a chore!

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About Eileen Adamson

I am Eileen Adamson, a Your Money, Sorted coach, working online with UK based women, helping you to develop a better relationship with money. I can help you to understand your money mindset and implement changes which will allow you to feel calm, positive and confident as you become happier, healthier and wealthier.

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